Government aims to collect taxes from tobacco industry
Government aims to collect taxes from tobacco industry (Rs 60 billion): In efforts to tackle tax evasion, the federal government plans to crack down on cigarette smuggling in the upcoming budget for 2024-25, aiming to recover around Rs 60 billion.
Sources familiar with the matter revealed that a commission has been assigned the task of collecting this estimated amount. This move is part of the government’s broader strategy to address smuggling and the trade of goods without paying the required duties.
As per the sources, shops caught selling smuggled or untaxed cigarettes will face fines, and those repeatedly involved may have their shops sealed in the next fiscal year. These measures are expected to be outlined in the forthcoming budget, signalling a concerted effort to combat tax evasion in the tobacco industry.
The decision is considered important for stopping illegal activities in the tobacco industry and making sure that people follow the tax rules.
The International Monetary Fund (IMF) has agreed to the suggestions made by the Federal Board of Revenue (FBR).
According to the current laws, smuggled and untaxed cigarettes will be destroyed.
To make sure these rules are followed properly, the FBR has started taking steps like temporarily closing down shops that are involved in illegal trading. This is aimed at making the tobacco market fairer and ensuring that everyone pays their taxes correctly.
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